MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI.  February 8, 2012 (Report 6)  

CENTRAL BUTTER:  The CME cash butter prices continues to decline and settled 
at $1.4400 at midweek.  This is the lowest cash price since early March 2010 
and compares to $2.1000 last year at this time and $1.3200 in 2010.  Churning 
activity in the Central part of the country remains seasonally strong.  Cream 
supplies are readily available to local churns from local and outside 
sources.  Cream coming in from outside sources continues as cream handlers in 
those regions need to keep volumes moving and the Central part of the country 
is where there is potential plant capacity or willingness on the part of 
butter producers to take on additional cream volumes.  Current churning 
schedules are generating heavier volumes of butter than demand dictates, thus 
clearances to inventory are increasing.  Butter demand is fair at best.  
Buyers continue to place orders, but are hesitant to place large orders.  
This is typically a purchasing strategy when the cash price is trending lower 
on basically a daily basis.  Food service orders are likewise fair.  
Restaurant and food service buyers continue to report, heavier than projected 
traffic flow for this time of the winter season.  Much of the heavier traffic 
is being attributed to mild winter weather patterns.  Again this week, CWT 
accepted export assistance requests for butter totaling nearly 3.4 million 
pounds.  The destinations, which include cheese, are Asia, the Middle East, 
and Northern Africa now through June 2012.  Butter producers and handlers are 
stating that this export activity will decrease inventory volumes, but is not 
significant enough to concern butter handlers at this time.  Within the past 
two weeks, the CWT program has accepted requests of export butter assistance 
for 14.4 million pounds.  Bulk butter prices range from flat to 3 cents over 
various pricing bases and averages per pound.  

1500c steve Schneeberger (608)278-4154